[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Rules and Regulations]
[Pages 45057-45060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18420]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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 The Code of Federal Regulations is sold by the Superintendent of Documents. 
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  Federal Register / Vol. 84, No. 167 / Wednesday, August 28, 2019 / 
Rules and Regulations  

[[Page 45057]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1499

RIN 0551-AA94


Food for Progress Program

AGENCY: Foreign Agricultural Service and Commodity Credit Corporation, 
USDA.

ACTION: Final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Commodity Credit Corporation (CCC) is amending the 
regulations governing the Food for Progress Program to include colleges 
and universities among the entities eligible for awards under the 
program, and to make other minor changes. The Agricultural Improvement 
Act of 2018 added colleges and universities to the list of eligible 
entities in the Food for Progress Act of 1985. This amendment 
implements the statutory change to expand the types of entities that 
can receive awards under the program, and it makes other technical 
changes to update the regulations.

DATES: This rule is effective August 28, 2019. Written comments must be 
received by CCC or carry a postmark or equivalent no later than 
September 27, 2019.

ADDRESSES: Comments, identified by Regulatory Information Number (RIN) 
0551-AA94, may be sent by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for sending comments.
     Email: [email protected]. Include RIN 0551-AA94 in the 
subject line of the message.
     Mail: Director, Food Assistance Division, Office of 
Capacity Building and Development, Foreign Agricultural Service, 1400 
Independence Ave. SW, STOP 1034, Washington, DC 20250.
    Instructions: All submissions received must include the agency name 
and RIN 0551-AA94.

FOR FURTHER INFORMATION CONTACT: Angela Crooks, (202) 756-7194, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Food for Progress Program provides for the donation of U.S. 
agricultural commodities to developing countries and emerging 
democracies committed to introducing and expanding free enterprise in 
the agricultural sector. The commodities are generally sold on the 
local market and the proceeds are used to support agricultural 
development activities. The program has two principal objectives: To 
improve agricultural productivity and expand trade in agricultural 
products. The Food for Progress Program is authorized in section 1110 
of the Food Security Act of 1985 (also known as the Food for Progress 
Act of 1985) (7 U.S.C. 1736o).
    The Foreign Agricultural Service (FAS) implements the Food for 
Progress Program on behalf of CCC. FAS uses the regulations in 7 CFR 
part 1499, Food for Progress Program, in the administration of the Food 
for Progress Program. The previous version of the regulations was 
published as a final rule on September 12, 2016 (81 FR 62603).

Amendment of Regulations

    FAS, on behalf of CCC, is amending the Food for Progress Program 
regulations in 7 CFR part 1499 through this final rule to implement a 
change made by the Agricultural Improvement Act of 2018 (Pub. L. 115-
334) to the Food for Progress Act of 1985, which added colleges and 
universities, as defined in 7 U.S.C. 3103(4), to the list of entities 
eligible for awards under the program. FAS is adding the definition 
``College or university'' to section 1499.2 and amending sections 
1499.1(d), (f)(1), and (g)(1), and 1499.3(a) to implement this 
statutory change. The change will foster greater competition in 
proposal submissions and provide an opportunity for more innovative 
projects to be considered.
    In addition, FAS is amending the regulations to make changes that 
are technical in nature and intended to improve the efficiency and 
effectiveness of the Food for Progress Program, including the 
following:
    (1) Clarifying that regulatory provisions that are generally 
applicable to CCC apply to the Food for Progress Program (7 CFR 
1499.1(c)).
    (2) Clarifying that provisions specified by CCC during the 
negotiation of an agreement, which are in addition to provisions 
required by the regulations, will be included in the agreement but will 
not necessarily be in the plan of operation component of the agreement 
(7 CFR 1499.5(d)).
    (3) Bringing the language in the regulations into better alignment 
with references in the Food for Progress Act of 1985 (7 CFR 
1499.5(e)(1) and (e)(4)).
    (4) Clarifying that the required assertion by a recipient that 
adequate transportation and storage facilities will be available in the 
target country refers to the time of arrival of the commodities in the 
target country (7 CFR 1499.5(e)(5)).
    (5) Modifying references to economic sanction programs to allow for 
situations in which a U.S. Government economic sanction program is not 
country-specific (7 CFR 1499.11(e) and 1499.14(b)(2)).
    (6) Replacing the specific reference to a percentage of the ``Grand 
Total Costs'' in the agreement budget with a more general reference to 
the amount specified in the agreement, which would allow CCC to make a 
change to the budget format if it determines that it would be 
beneficial (7 CFR 1499.11(h)(1)).
    (7) Allowing CCC to specify in the agreement the circumstances in 
which a recipient must submit to CCC a contract with a provider of 
goods, services, or construction work (7 CFR 1499.11(k)).
    (8) Allowing for the possibility that there might not be any 
closeout and post-closeout provisions specified in an agreement and 
that only those provisions in 2 CFR 200.343 and 200.344 would apply (7 
CFR 1499.16(b)(3)).
    (9) Modifying language to reflect that FAS personnel who act on 
behalf of CCC to make determinations under the Food for Progress 
Program are not necessarily CCC officials but are acting under 
delegated authority (7 CFR 1499.17(b) and (c)).

Notice and Comment

    This rule is being issued as a final rule without prior notice and

[[Page 45058]]

opportunity for comment. The Administrative Procedure Act exempts rules 
``relating to agency management or personnel or to public property, 
loans, grants, benefits, or contracts'' from the statutory requirement 
for prior notice and opportunity for comment (5 U.S.C. 553(a)(2)). 
Accordingly, this rule may be made effective less than 30 days after 
publication in the Federal Register. However, members of the public may 
participate in this rulemaking by submitting written comments, data, or 
views. CCC will consider the comments received and may conduct 
additional rulemaking based on the comments. Written comments must be 
received by CCC or carry a postmark or equivalent no later than 
September 27, 2019.

Catalog of Federal Domestic Assistance

    The program covered by this regulation is listed in the Catalog of 
Federal Domestic Assistance (CFDA) under the following FAS CFDA number: 
10.606, Food for Progress.

E-Government Act Compliance

    CCC is committed to complying with the E-Government Act of 2002 (44 
U.S.C. chapter 36), to promote the use of the internet and other 
information technologies to provide increased opportunities for 
citizens' access to Government information and services, and for other 
purposes.

Executive Order 12866

    This rule is issued in conformance with Executive Order 12866, 
``Regulatory Planning and Review.'' It has been determined to be not 
significant for the purposes of Executive Order 12866 and, therefore, 
was not reviewed by the Office of Management and Budget. Pursuant to 
the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of 
Information and Regulatory Affairs designated this rule as not a major 
rule, as defined by 5 U.S.C. 804(2).

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988, ``Civil Justice Reform.'' This rule does not preempt State or 
local laws, regulations, or policies unless they present an 
irreconcilable conflict with this rule. This rule will not be 
retroactive.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with officials of State and local 
governments that would be directly affected by the proposed Federal 
financial assistance. The objectives of the Executive Order are to 
foster an intergovernmental partnership and a strengthened federalism 
by relying on State and local processes for the State and local 
government coordination and review of proposed Federal financial 
assistance and direct Federal development. This rule will not directly 
affect State or local officials and, for this reason, it is excluded 
from the scope of Executive Order 12372.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally requires an agency to prepare a regulatory flexibility 
analysis of any rule that is subject to notice and comment rulemaking 
under the Administrative Procedure Act (APA) or any other law, unless 
the agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. The Regulatory 
Flexibility Act does not apply to this rule because CCC is not required 
by the APA or any other law to publish a notice of proposed rulemaking 
with respect to the subject matter of the rule.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' This rule will not have any substantial direct effect 
on States, on the relationship between the Federal government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, except as required by law. This rule does 
not impose substantial direct compliance costs on State and local 
governments. Therefore, consultation with the States was not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes. CCC does not expect 
this rule to have any effect on Indian tribes.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does 
not apply to this rule because it does not impose any enforceable duty 
or contain any unfunded mandate as described under the UMRA.

List of Subjects in 7 CFR Part 1499

    Agricultural commodities, Cooperative agreements, Exports, Food 
assistance programs, Foreign aid, Grant programs-agriculture, Technical 
assistance.

    For the reasons set forth in the preamble, the Commodity Credit 
Corporation amends part 1499 of title 7 of the Code of Regulations as 
follows:

PART 1499--FOOD FOR PROGRESS PROGRAM

0
1. The authority citation for part 1499 continues to read as follows:

    Authority: 7 U.S.C. 1736o; and 15 U.S.C. 714b and 714c.


0
2. In Sec.  1499.1, revise paragraphs (c), (d), (f)(1), and (g)(1) and 
(2) to read as follows:


Sec.  1499.1   Purpose and applicability.

* * * * *
    (c) Except as otherwise provided in this part, other regulations 
that are generally applicable to grants and cooperative agreements of 
USDA, including the applicable regulations set forth in 2 CFR chapters 
I, II, and IV, also apply to the FFPr Program. The provisions of the 
CCC Charter Act (15 U.S.C. 714 et seq.) and any other statutory or 
regulatory provisions that are generally applicable to CCC apply to the 
FFPr Program.
    (d) In accordance with 7 U.S.C. 1736o(b)(5), assistance under the 
FFPr Program may be provided to governments of emerging agricultural 
countries, intergovernmental organizations, private voluntary 
organizations, nonprofit agricultural organizations or cooperatives, 
nongovernmental organizations, colleges or universities, and any other 
private entities.
* * * * *
    (f)(1) The OMB guidance at subparts A through E of 2 CFR part 200, 
as supplemented by 2 CFR part 400 and this part, applies to all awards 
by CCC under the FFPr Program to all recipients that are private 
voluntary organizations, including a private voluntary organization 
that is a foreign organization, as defined in 2 CFR

[[Page 45059]]

200.47; nonprofit agricultural organizations or cooperatives, including 
a nonprofit agricultural organization or cooperative that is a foreign 
organization; nongovernmental organizations, including a 
nongovernmental organization that is a for-profit entity or a foreign 
organization; colleges or universities; or other private entities, 
including a private entity that is a for-profit entity or a foreign 
organization.
* * * * *
    (g)(1) The OMB guidance at subpart F of 2 CFR part 200, as 
supplemented by 2 CFR part 400 and this part, applies only to awards by 
CCC to recipients that are private voluntary organizations, 
agricultural organizations or cooperatives, nongovernmental 
organizations, colleges or universities, or other private entities, but 
that are not for-profit entities or foreign organizations.
    (2) The OMB guidance at subpart F of 2 CFR part 200, as 
supplemented by 2 CFR part 400 and this part, applies to subawards to 
subrecipients under this part, except where the subrecipient is a for-
profit entity, foreign public entity, or foreign organization.
* * * * *

0
3. In Sec.  1499.2, add a definition for ``College or university'' in 
alphabetical order to read as follows:


Sec.  1499.2   Definitions.

* * * * *
    College or university means an educational institution in any State 
which admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate; is legally authorized 
within such State to provide a program of education beyond secondary 
education; provides an educational program for which a bachelor's 
degree or any other higher degree is awarded; is a public or other 
nonprofit institution; and is accredited by a nationally recognized 
accrediting agency or association. The terms include a research 
foundation maintained by such a college or university. As used in this 
definition, State will have the meaning given in 7 U.S.C. 3103(16).
* * * * *

0
4. In Sec.  1499.3, revise paragraph (a) to read as follows:


Sec.  1499.3   Eligibility and conflicts of interest.

    (a) A private voluntary organization, a nonprofit agricultural 
organization or cooperative, a nongovernmental organization, a colleges 
or university, or any other private entity is eligible to submit an 
application under this part to become a recipient under the Food for 
Progress Program. CCC will set forth specific eligibility information, 
including any factors or priorities that will affect the eligibility of 
an applicant or application for selection, in the full text of the 
applicable notice of funding opportunity posted on the U.S. Government 
website for grant opportunities.
* * * * *

0
5. In Sec.  1499.5:
0
a. Revise paragraphs (d)(2)(vii) and (viii);
0
b. Remove paragraph (d)(2)(ix);
0
c. Revise paragraphs (d)(3) and (4);
0
d. Add paragraph (d)(5); and
0
e. Revise paragraphs (e)(1), (4), and (5).
    The revisions and addition read as follows:


Sec.  1499.5   Agreements.

* * * * *
    (d) * * *
    (2) * * *
    (vii) Any other governmental or nongovernmental entities that will 
be involved in the implementation of the activities; and
    (viii) Any processing, packaging, or repackaging of the donated 
commodities that will take place prior to their distribution, sale, or 
barter by the recipient;
    (3) A budget, which will set forth the maximum amounts of sale 
proceeds, CCC-provided funds, interest, program income, and voluntary 
committed cost sharing or matching contributions that may be used for 
each line item, as well as other applicable budget requirements;
    (4) Performance goals for the agreement, including a list of 
results, with long-term benefits where applicable, to be achieved by 
the activities and corresponding indicators, targets, and time frames; 
and
    (5) Any additional provisions specified by CCC during the 
negotiation of the agreement.
    (e) * * *
    (1) The agreement will prohibit the sale or transshipment of the 
donated commodities by the recipient to a country not specified in the 
agreement, or the use of the donated commodities for other than 
domestic purposes, for as long as the recipient has title to such 
donated commodities;
* * * * *
    (4) The recipient will assert that, to the best of its knowledge, 
any sale or barter of the donated commodities will not displace or 
interfere with any sales of United States commodities that may 
otherwise be made to or within the target country. The recipient must 
submit information to CCC to support this assertion; and
    (5) The recipient will assert that adequate transportation and 
storage facilities will be available in the target country at the time 
of the arrival of the donated commodities to prevent spoilage or waste 
of the donated commodities. The recipient must submit information to 
CCC to support this assertion.
* * * * *

0
6. In Sec.  1499.6, revise paragraph (f)(6)(iv) to read as follows:


Sec.  1499.6   Payments.

* * * * *
    (f) * * *
    (6) * * *
    (iv) If a recipient must return funds to CCC in accordance with 
paragraph (f)(6) of this section, the recipient must return the funds 
by the later of five business days after the 91st day after the funds 
were advanced, or five business days after the date on which the 
recipient receives notice from CCC that it has denied the recipient's 
request to roll over the funds; provided, however, that CCC may specify 
a different date for the return of funds in a written communication to 
the recipient.
* * * * *

0
7. In Sec.  1499.11, revise paragraphs (e), (h)(1), and (k) to read as 
follows:


Sec.  1499.11   Use of donated commodities, sale proceeds, CCC-provided 
funds, and program income.

* * * * *
    (e) A recipient must not use sale proceeds, CCC-provided funds, 
interest, or program income to acquire goods and services, either 
directly or indirectly through another party, in a manner that violates 
a U.S. Government economic sanction program, as specified in the 
agreement.
* * * * *
    (h)(1) Except as provided in paragraph (h)(2) of this section, a 
recipient may make adjustments within the agreement budget between 
direct cost line items without further approval, provided that the 
total amount of adjustments does not exceed the amount specified in the 
agreement. Adjustments beyond these limits require the prior approval 
of CCC.
* * * * *
    (k) A recipient must enter into a written contract with each 
provider of goods, services, or construction work that is valued at or 
above the Simplified Acquisition Threshold. Each such contract must 
require the provider to

[[Page 45060]]

maintain adequate records to account for all donated commodities, 
funds, or both furnished to the provider by the recipient and to comply 
with any other applicable requirements that may be specified by CCC in 
the agreement. The recipient must submit a copy of each signed contract 
to CCC, as specified in the agreement.

0
8. In Sec.  1499.14, revise paragraph (b)(2) to read as follows:


Sec.  1499.14   Subrecipients.

* * * * *
    (b) * * *
    (2) The subrecipient is prohibited from using sale proceeds, CCC-
provided funds, interest, or program income to acquire goods and 
services, either directly or indirectly through another party, in a 
manner that violates a U.S. Government economic sanction program, as 
specified in the agreement.
* * * * *

0
9. In Sec.  1499.16, revise paragraph (b)(3) to read as follows:


Sec.  1499.16   Suspension and termination of agreements.

* * * * *
    (b) * * *
    (3) Must comply with any closeout and post-closeout provisions 
specified in the agreement and 2 CFR 200.343 and 200.344.

0
10. In Sec.  1499.17, revise paragraphs (b) and (c) to read as follows:


Sec.  1499.17   Opportunities to object and appeals.

* * * * *
    (b) The recipient must submit its objection in writing, along with 
any documentation, to the official specified in the agreement within 30 
days after the date of CCC's written notification to the recipient of 
the CCC action being challenged. This official will endeavor to notify 
the recipient of his or her determination (the initial determination) 
within 60 days after the date that CCC received the recipient's written 
objection.
    (c) The recipient may appeal the initial determination to the 
Administrator, FAS. An appeal must be in writing and be submitted to 
the Office of the Administrator within 30 days after the date of the 
initial determination. The recipient may submit additional 
documentation with its appeal.
* * * * *

    Dated: July 19, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.

    In concurrence with.

    Dated: July 18, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-18420 Filed 8-27-19; 8:45 am]
 BILLING CODE 3410-10-P